The accounting term for a situation where two or more people act in coordination to circumvent internal controls is (Enter one word per blank).

The accounting term for a situation where two or more people act in coordination to circumvent internal controls is collusion.

Collusion occurs when two or more individuals conspire together to deceive or manipulate the financial system, often leading to fraudulent activities. This can happen in various contexts within an organization, such as overstepping controls designed to protect assets or financial integrity. Collusion is particularly dangerous because it undermines the effectiveness of internal audits and controls, making it difficult to detect irregularities. It emphasizes the need for robust internal mechanisms and periodic reviews to ensure compliance and mitigate the risk of fraudulent activities. Organizations must be vigilant and foster a culture of accountability to deter collusion among personnel.